Combinatorial Algorithms for Matching Markets via Nash Bargaining: One-Sided, Two-Sided and Non-Bipartite
Abstract
In the area of matching-based market design, existing models using cardinal utilities suffer from two deficiencies, which restrict applicability: First, the Hylland-Zeckhauser (HZ) mechanism, which has remained a classic in economics for one-sided matching markets, is intractable; computation of even an approximate equilibrium is PPAD-complete [Vazirani, Yannakakis 2021], [Chen et al 2022]. Second, there is an extreme paucity of such models. This led [Hosseini and Vazirani 2021] to define a rich collection of Nash-bargaining-based models for one-sided and two-sided matching markets, in both Fisher and Arrow-Debreu settings, together with implementations using available solvers and very encouraging experimental results. [Hosseini and Vazirani 2021] raised the question of finding efficient combinatorial algorithms, with proven running times, for these models. In this paper, we address this question by giving algorithms based on the techniques of multiplicative weights update (MWU) and conditional gradient descent (CGD). Additionally, we make the following conceptual contributions to the proposal of [Hosseini and Vazirani 2021] in order to set it on a more firm foundation: 1) We establish a connection between HZ and Nash-bargaining-based models via the celebrated Eisenberg-Gale convex program, thereby providing a theoretical ratification. 2) Whereas HZ satisfies envy-freeness, due to the presence of demand constraints, the Nash-bargaining-based models do not. We rectify this to the extent possible by showing that these models satisfy approximate equal-share fairness notions. 3) We define, for the first time, a model for non-bipartite matching markets under cardinal utilities. It is also Nash-bargaining-based and we solve it using CGD.
- Publication:
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arXiv e-prints
- Pub Date:
- June 2021
- DOI:
- 10.48550/arXiv.2106.02024
- arXiv:
- arXiv:2106.02024
- Bibcode:
- 2021arXiv210602024P
- Keywords:
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- Computer Science - Computer Science and Game Theory;
- Economics - Theoretical Economics;
- F.2
- E-Print:
- 53 pages. arXiv admin note: text overlap with arXiv:2105.10704